Travel Agencies Get Some Disaster Relief

House Small Business Committee Chairman hails SBA, OMB decision to help more businesses get disaster loans

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March 14, 2002

House Small Business Committee Chairman Don Manzullo (R-IL)
praised the Administration last week for changing its size
standards to allow more small-business travel agents hurt by the
September 11 attacks to qualify for disaster loan assistance.

The SBA and the U.S. Office of Management and Budget notified
Manzullo late Thursday that they had substantially raised the
revenue size standard for travel agents seeking low-interest
Economic Injury Disaster Loans. Now, travel agencies with annual
revenues up to $3 million can qualify for the disaster loans.
Previously, travel agencies with annual revenues exceeding $1
million were deemed "too large" and were ineligible for
small-business relief.

"This is great news for many small travel agencies who have
been shut out of small-business disaster programs because they have
been deemed 'too large,'" Manzullo said. "Now
they can get the help they need to survive these tough times and
once again prosper."

Last week, Manzullo gathered SBA Administrator Hector Barreto
and OMB Office of Information and Regulatory Affairs Administrator
John Graham at a small-business committee hearing to discuss the
plight of struggling travel agencies. During the meeting, Barreto
and Graham agreed to speed up their rulemaking process to quickly
help the travel industry. Manzullo hopes to work closely with
administrators Barreto and Graham in reviewing size standards for
other small-business sectors.

"I congratulate Administrators Barreto and Graham for their
quick decision to help our struggling small-business travel
agencies," Manzullo said. "Their actions have saved many
small businesses in our country and allowed many travel employees
to keep their jobs."